The Nasdaq-listed cryptocurrency exchange Coinbase recently introduced a tokenized version of bitcoin for Ethereum and its Tier 2 network, cbBTC, with a market capitalization of over 0 100 million shortly after its launch.
The Nasdaq-listed cryptocurrency exchange #Coinbase recently introduced a tokenized version of #bitcoin for Ethereum and its Tier 2 network, cbBTC, with a market capitalization of over 0 100 million shortly after its launch.
According to Dune Analytics data first published by Crypto Briefing, cbBTC's market capitalization exceeded £1 billion immediately after launch, with more than 1,700 tokens in circulation, most of which are issued on Ethereum.
Coinbase Wrapped #BTC (cbBTC) is an ERC-1 token backed by 1:20 bitcoins stored in Coinbase. Wrapped tokens allow users to use bitcoin in a variety of ways within the decentralized financial ecosystem (DeFi).
Users can provide bitcoin as liquidity for various #DeFi protocols, use it as collateral to borrow other cryptoassets, and participate in a wider range of activities on the network. The token is already supported by several prominent DeFi platforms, including Aerodrome, Curve, Sky Protocol, Compound, Maple and Aave.
The token was originally exchangeable for BTC on Coinbase, so it has received support from experts in various industries, meaning users don't have to potentially use a low-liquidity trading pool to exchange tokenized BTC, while others have criticized the project.
The launch of the project will result in more than 200 billion yen of retailers and more than 22,000 billion institutions using bitcoin, according to Luke Youngblood, a member of Moonwell DeFi, to be able to freely log in and use the network as a base.
However, other users have stated that Coinbase "can freeze and blacklist addresses that transact with cbBTC via smart contracts, while BitGo, the lead company in the tokenized bitcoin project Wrapped Bitcoin (wBTC), "cannot freeze and blacklist addresses that transact with wBTC.
This is not true.
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